In many business to business scenarios involving buyers (disbursers) and suppliers (merchants), the buyers still pay via check (paper), and suppliers have to wait a full thirty days, or typically, longer, to get paid. Such buyer-merchant relationships can benefit from the use of payment by electronic means, and earlier payments to the sellers.
The buyers, however, are reluctant to make use of card payment systems, because payment by check allows for greater control of payments, with less risk of fraud. Due to their risk-averse nature, commercial buyers tend to prefer the additional control, and fraud protection, afforded by check payments. In addition, buyers prefer to be able to control the time at which payment is made, so that cash flow and account balances can be properly maintained. Buyers typically enjoy the ability to maintain a “float” by delaying payment via check payments. In such scenarios, the buyer (disburser) orders goods from a supplier (merchant). The supplier then sends the goods, along with an invoice. The buyer then compares what has been ordered with what has been received, and, upon a satisfactory review, the invoice is approved, and a check can be issued. Such control is not allowed by typical merchant card payment systems.
Such buyers suffer, however, from inefficiencies involved with the use of paper payments, and leave cash on the table which could result from earlier payments.
Thus, there is a need for an improved systems and methods for providing improved payment arrangements related to credit and payment cards.